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Be guaranteed payment on “No Show” check reservations. |
 Using
the “Pre-Authorization” program of CrossCheck, a hotel can treat its customers
who wish to pay by check the same as their credit card customers.
Therefore, customers may make a reservation by check directly through the
hotel’s reservation center, without having to subsequently mail the hotel
a check for their stay before their arrival date.
This provides the check writer with the feeling that the hotel respects them as much as a credit card customer. The toughest area for a hotel in taking reservations over the phone, whether it is by credit card or by check is when the guest does not show up to use their room; and, they have not canceled their reservation. In the hotel industry, this is called a “No Show”. Here is what happens from this point. At the time the reservation was made, the hotel has informed the guest of their cancellation policy, which is generally 24 to 48 hours notification prior to their arrival date. The standard charge for a “No Show” is to charge the customer one night’s room and tax. Now, what often times happens on a credit card transaction is that the hotel puts through the charge, and then; the customer disputes this charge by claiming that “goods and services were not rendered, and that they did not use the room. At this point, the hotel generally gives up, and loses the revenue. Many hotel executives do not know that legally they are required to hold the room for the entire evening that the reservation was made, and cannot sell that hotel room to another guest. This law is to protect guests whose travel plans are delayed by inclement weather, etc. Again, using the CrossCheck program, the hotel would not have to worry about “not” getting paid by the consumer issuing a credit card “chargeback” (disputing the charge) which the consumer can do for up to six month’s after the charge was initiated. Here, the hotel has informed the guest about their policy, and that they are required to hold the hotel room for them. Then, if a guest who has made their reservation by check does not show up at the hotel, the hotel simply submits the claim to CrossCheck with the reservation information. The hotel is paid by CrossCheck in a timely manner. There are no claim forms for the hotel Controller to fill out. More importantly, here, the hotel is guaranteed payment. In other
words, it is in the hotels interest to use CrossCheck.
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We encourage you to take a few minutes to read about each one of our services. To discuss these programs simply email us at: BIZAMERICA@aol.com Please provide your topics of interest, name and position within the email.